How to Track Global Shipping Costs: 3 Tools and Key Freight Indexes Explained
Navigating the volatile ocean freight market requires reliable data and a clear understanding of key indicators. This guide breaks down essential tools and indexes to help shippers, freight forwarders, and investors make informed decisions.
- Top 3 Freight Rate Tracking Tools
① Shanghai Shipping Exchange (SSE)
- Key Indexes: Publishes the CCFI (China Containerized Freight Index) and SCFI (Shanghai Containerized Freight Index).
- Function:
- CCFI reflects China’s nationwide export container freight trends (base year: 1998 = 1,000 points).
- SCFI tracks Shanghai’s export container rates (base year: 2009 = 1,000 points).
- Updates: Weekly.
- Best for: Monitoring broad market trends in China and Asia.
② Xeneta
- Focus: Real-time long-term contract rates (e.g., annual agreements between shippers and carriers).
- Features: Historical data, regional/route comparisons, and market analytics.
- Best for: Shippers negotiating contracts or analyzing long-term rate trends.
- Note: Partial data requires a paid subscription.
③ Drewry’s World Container Index (WCI)
- Focus: Global spot market rates for major trade lanes (e.g., Asia-Europe, Transpacific).
- Updates: Weekly.
- Best for: Tracking immediate price fluctuations and global benchmarks.
- Note: Full access requires a subscription.
- Decoding CCFI and SCFI Indexes
What Do the Index Values Mean?
- Example: If CCFI rises from 1,000 to 1,500, it indicates a 50% increase in average freight rates since the base year.
- Key Difference:
- CCFI = China’s nationwide export rate trends.
- SCFI = Shanghai Port’s export rates (more granular).
Understanding SCFI Route Weights
- Weights reflect a lane’s contribution to the overall index. Higher weights mean greater influence on the index.
- Example Breakdown (hypothetical, verify latest weights):
- US West Coast: 30% (high volume, major trade lane).
- Europe: 25% (critical for Shanghai’s exports).
- Southeast Asia: 15%.
- South America: 10%.
- Others: 20% (Africa, Middle East).
- Note: Weights are periodically adjusted based on trade volume shifts.
- Practical Applications for Different Users
For Shippers
- Time shipments strategically: Use rising/falling trends to avoid peak rates.
- Validate quotes: Compare carrier offers against index trends (e.g., SCFI for Shanghai exports).
For Freight Forwarders
- Enhance client trust: Share index-based market insights to justify pricing.
- Adjust pricing strategies: Anticipate rate changes using historical patterns.
For Investors
- Link indexes to markets: Correlate SCFI/CCFI trends with shipping stocks (e.g., COSCO, Maersk).
- Watch for lag: Indexes reflect past data; combine with real-time news (e.g., port congestion, geopolitical risks).
- Limitations and Pro Tips
Critical Gaps to Know
- Regional bias: SCFI covers only Shanghai exports; use regional indexes (e.g., FBX for Europe/US) if needed.
- Averages vs. reality: Indexes don’t capture carrier-specific premiums, surcharges, or container type differences.
- Data delays: SCFI/CCFI update weekly—sudden disruptions (e.g., Red Sea crises) may not be immediately reflected.
Optimize Your Analysis
- Combine multiple sources: Use Xeneta/WCI for spot rates and SSE for macro trends.
- Track auxiliary factors:
- Supply: Fleet capacity, new ship deliveries, port congestion.
- Demand: Seasonal cargo peaks (e.g., holiday seasons).
- Costs: Bunker fuel prices, carbon taxes.
- Leverage free tools:
- Freightos Baltic Index (FBX): Free daily spot rate snapshots.
- Port websites: Real-time congestion data (e.g., LA Port).
- Conclusion
Freight indexes like CCFI and SCFI, combined with platforms like Xeneta and Drewry, provide powerful tools to navigate the complex shipping market. However, always:
- Verify data timeliness and source.
- Contextualize indexes with real-world factors (e.g., sanctions, weather).
- Use specialized platforms (e.g., Flexport) for tailored rate quotes.
Stay ahead by treating indexes as a compass—not the entire map.